Tax Manager - Fundamentals

The aim of this certification programme is to provide participants with the fundamental technical skills needed to apply the principles of Luxembourg tax law. Combining theory and practical application, this programme will enable participants to know and understand the legal framework of the 3 tax disciplines.

In particular, it will enable participants to master the preparation of the various tax returns, so that by the end of the course they will be directly operational at their workstation and able to deal with general tax issues within their company or on behalf of clients.

This important foundation also opens the door to participants who subsequently wish to specialise in one of the disciplines.

All the theoretical aspects of the course will be illustrated by real-life business situations, and for each discipline participants will attend a practical workshop where they will be able to put their learning into practice by preparing tax returns.

• Corporate Tax (3 days: 2-day course + 1-day practical workshop)

• Personal tax (3 days: 2-day course + 1-day practical workshop)

• Indirect tax (VAT) (2 days: 1-day training + 1 day practical workshop)

The teaching team is made up of experienced practitioners who are able to pass on practical applications on a daily basis.

A 4-hour final exam validates the fundamental skills required of a tax manager.

At the end of this course, participants will be able to master the technical skills required to apply the fundamental principles of Luxembourg tax law:

• Know and understand the legal framework of the 3 tax disciplines (corporate tax, indirect tax, personal tax)

• Master the preparation of the various tax returns

• Manage and deal with basic tax issues within your company or on behalf of clients

BLOC 1 - Corporate Tax 

Module 1: Corporate Tax in Luxembourg - Foundation and Mechanism

• Basic concepts

• • Definition of tax

  • Sources of tax law

  • Tax residency

  • The different companies

  • The tax year/operating year

  • The different steps of taxation

• Taxation of commercial companies

• • Overview of direct taxes applicable to companies

  • Forms of income taxation Determining taxable income

  • Accounting and tax valuation rules

  • Non-taxable income, non-deductible expenses and other adjustments

  • Tax credits

• Hidden contributions and hidden dividend distributions

• • The definition

  • Tax treatment

• Tax consolidation

• • Description of the regime

  • Eligibility for the scheme

  • Tax consequences

• Net Wealth tax

• • Characteristics of net wealth tax

  • Determination and basis of assessment

  • Minimum Wealth Tax

  • Reduction of wealth tax

• Withholding tax 

• Recent developments

Module 2: Corporate Tax in Luxembourg - Practical Workshop on Corporate Tax Returns

• Determination of taxable bases

• Declaration for all companies, with particular attention to financial holding companies (i.e. holding and financing companies)

BLOC 2 - Personal Income Tax

Module 3: Personal Income Tax in Luxembourg - Application and Recent Updates 

The main themes of the course include:

• General principles of personal taxation

• The distinction between professional and private income

• Private expenses and determining net income

• The different categories of income (self-employed, salaried employment, business profits, pensions and annuities, movable capital, property rental, etc.)

• Income available

• Special expenses, tax credits and allowances

• Extraordinary income and charges

• Tax filing obligations

• Double taxation agreements (high level introduction on the principles)

More specific topics:

• The Relibi law (optional regime for the 20% withholding tax on certain interest earned on savings and paid by a paying agent established abroad)

• The home savings scheme

• Approved occupational pension scheme

• The old-age savings scheme

The latest developments in individual taxation:

• Taxation of cross-border commuters (high level comments)

• Individual taxation

• RCPI (approved occupational pension scheme for the self-employed workers)

• Exercises

• Calculating net income from employment

• Calculating net property income (main residence and rental income)

• Calculation of net income from transferable securities

• Calculation of special expenses

• Calculation of extraordinary expenses

• Calculation of adjusted taxable income

• Summary exercise with preparation of personal tax return and corresponding tax calculation

Module 4:  Personal Income Tax in Luxembourg - Practical Workshop on Tax Returns

A set of practical exercises to help you complete your personal tax return.

BLOC 3 - Indirect Tax

Module 5: VAT - Application and Recents Evolutions

• The 5 questions to ask

• Taxable basis, triggering event, and tax liability

• Exemptions

• Right to deduction and reimbursement

• Invoices: mentions and retention

• Reporting obligations

• Means of proof, control measures, procedures, remedies, sanctions and statutes of limitations

Anyone interested in joining the tax professions sector

• Assistant accountant

• Lawyer

• Accountant

• Fiduciary assistant

The course culminates in an examination, the successful completion of which is attested by a certificate issued by the House of Training and co-signed with the Ministry of Education, Children and Youth.

To obtain the certificate, an attendance rate of 80% at training courses and an average mark of 60% in the examination are required.